Aurora Gold mine contains 4.6 million ounces of gold

Guyana Goldfields Inc said it has received positive results from a feasibility study for its Aurora Gold Project, which showed that the area has 45.2 million tonnes of ore grading, containing a total of 4.6 million ounces of gold. The current measured and indicated amounts total 5.71 million ounces gold (47.04 million tonnes at a grade of 3.83 g/ t).

The feasibility study report will be compiled under the supervision of SRK Consulting (Canada) Inc, with assistance from prominent industry consultants. A conference call was expected to be held by management of the firm to further discuss the results.

The Aurora Gold Project is expected to have a positive impact on the economy of Guyana by providing employment and skills training for persons, and generating business opportunities for local suppliers and service providers.

The company is dedicated to becoming a leading corporate citizen and a productive partner in the Guyana’s economy.

The Aurora Gold Project is presently the only large-scale licensed gold mine development project in Guyana, and will begin producing gold in late 2014.

According to the findings of the study, Base Case was calculated using US$ 1300 per ounce of gold (oz) and US$ 100 per barrel WTI crude oil.

Proven and probable reserves of 4.6 million ounces mean 22 full years of mining, using a combined open pit and underground mining scenario. The mill through put rate is estimated at 8000 tonnes per day from 2015 to 2023 and an average of 4500 tonnes (nominal) from 2024 to 2035.

In 2019, production from the underground mining will commence and will gradually replace open pit feed. Underground mine access will be via ramp and shaft (mine depth to 1320m).

Guyana Goldfields Inc President and Chief Operations Officer Claude Lemasson stated: “The completion of the feasibility study is a major accomplishment for the company, establishing the Aurora Gold Project as Guyana’s largest undeveloped gold reserve in the country’s history. The positive results confirm that the Aurora Gold Project is poised to become a future significant gold producer in Guyana and in the Guiana Shield. Construction on the project is expected to commence later this year and will last for approximately 24 months.”

An independent thirdparty review of the feasibility study, and an internal review by Guyana Goldfields, were initiated last month and are ongoing. The company said it has recognised additional opportunities to improve the project economics.

The processing plant design: Although the operating parameters are at 8000 tonnes per day, the process plant was designed at 9500 tonnes per day to allow the underground development to be moved forward; a redesign of the processing plant as part of the post-feasibility study design and engineering to 8000 tonnes per day would potentially reduce mill capital cost by approximately 10 per cent.

Various other potential cost-reducing opportunities being explored include: using contract mining for open pit; phasing underground development; optimising underground design and mining methods; purchasing used equipment; and reviewing grind size in the processing plant.

Guyana Goldfields Inc is a Canadian-based company, primarily focused on the exploration and development of gold deposits in Guyana, where the company has operated since 1996.

Back in November last year, the government of Guyana and Guyana Gold Fields Inc signed a mineral agreement which sets the conditions for the development of the large gold mine at Aurora in the Cuyuni River. The agreement was signed at the Office of the President in the presence of then President Bharrat Jagdeo; then People’s Progressive Party (PPP/ C) presidential candidate Donald Ramotar (now president); Finance Minister Dr Ashni Singh; Sir Shridath Ramphal; Guyana Geology and Mines Commission (GGMC) Chairman Major General (retired) Joe Singh; acting GGMC Commissioner Karen Livan, Guyana Gold Fields Inc CEO Patrick Sheridan, and other officials of the mining company.